Viad’s Overall 2015 Q1 Revenues Down 7.4 Percent, Same-show Revenues Up 7.4 Percent

May 3, 2015

Negative show rotation in the first quarter of 2015 had an impact on Viad’s overall revenues, dipping to $264.4 million, compared with $285.6 million in the first quarter of 2014.

Global Experience Specialists, a division of Viad, also saw first-quarter revenues decrease to $256.9 million, compared with $277.8 million during the same time period last year.

"Both business groups delivered steady progress toward our financial goals for 2015.  Results for the quarter were in line with guidance and the underlying businesses performed well, with continued same-show growth in M&E (Marketing and Events - GES) and organic growth in T&R (Travel and Recreation),” said Steve Moster, Viad’s president and CEO.

He added, “Additionally, our recent acquisitions are meeting expectations and resulting in new business wins.”

Even with the overall decrease in revenues, same-show growth saw a big jump of 7.4 percent. “I think that this bodes well for the industry,” Moster said.

He added a number of sectors had experienced increase and that there was continued growth in the number of exhibitors, attendees and net square footage. Base same-show revenue is expected to increase at a mid-single digit rate in the U.S. throughout the year.

For 2015, the acquisitions of onPeak, Blitz Communications and N200 are expected to provide incremental revenue of $45 million to $50 million and incremental adjusted segment EBITDA of $13 million to $14 million, compared with 2014. 

“We are continuing to integrate (these businesses) with GES,” Moster said, adding that the goal is to provide a full suite of services for their clients.

The acquisitions have allowed GES’ existing clients to hire on new services, such as Morgan Stanley, who already utilized GES’ registration and measurement services, and now also added AV.

As far as the rest of the year, consolidated revenue is expected to be comparable to 2014 full year revenue, despite negative show rotation of approximately $70 million and unfavorable currency translation of approximately $45 million.

“As we continue to improve the fundamentals of our businesses through our strategic initiatives and operational efficiencies, we are well positioned to deliver enhanced shareholder value and significant growth in 2016 and beyond,” Moster said.

In non-trade show related GES news, the company recently partnered with Twentieth Century Fox Consumer Products (Fox) to develop and tour an exhibition based on James Cameron's AVATAR”.

The state-of-the-art global touring exhibition, which will kick off in the fall of 2016, is inspired by the creatures and environments of the world of Pandora first introduced in the record-breaking film. Fox and GES are developing the interactive attraction in consultation with James Cameron and Jon Landau’s Lightstorm Entertainment.

“This unprecedented global exhibition will create a truly memorable experience for fans,” said Jeffrey Godsick, president of Twentieth Century Fox Consumer Products. “Bringing the world of Pandora to life and comparing it to the wonders of our own planet, the ‘AVATAR’ exhibition will bring together immersive new storytelling and science in a tangible, engaging forum.”

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Less than six months ago, Lisa Messina joined the Las Vegas Convention and Visitors Authority (LVCVA) as the first-ever chief sales officer after leading the sales team at Caesars Entertainment. A 12-year Las Vegas resident, Messina is a graduate of Cornell University’s School of Hotel Administration and serves on MPI International’s board of directors. TSNN had a chance to catch up with this dynamic leader and talk to her about her vision for the new role, current shifts in the trade show industry, creating more diversity and equity within the organization, and advice to future female leaders. Lisa Messina, Chief Sales Officer, LVCVA With Las Vegas becoming The Greatest Arena on EarthTM, what are some of the things you’re most excited about in your role? Our team was at The Big Game’s handoff ceremony earlier this month, and I couldn’t help but think, “We’re going to crush it next year!”  These high-profile events and venues not only drive excitement, but also provide unmatched opportunities for event planners. Allegiant Stadium hosts events from 10 to 65,000 people and offers on-field experiences. Formula 1 Grand Prix will take place in Las Vegas in November, after the year-one F1 race, the four-story paddock building will be available for buyouts and will also offer daily ride-along experiences that will be available for groups. And, of course, the MSG Sphere officially announced that it will open in September, ahead of schedule, with a U2 residency. It’s going to be the most technologically advanced venue as far as lighting, sound, feel, and even scent, and it will be available for buyouts and next-level sponsorships inside and outside. There’s no ceiling to what you can do when you’re doing events in Las Vegas.  Allegiant Stadium As the trade show and convention business returns to the pre-pandemic levels, what shifts are you noticing and how do you think they will impact the industry going forward? Our trade show organizers are very focused on driving customer experience. Most of our organizers are reporting stronger exhibitor numbers and increased numbers of new exhibitors, with trade shows proving to be almost or above 2019 levels. Now our organizers are really doubling down on driving attendance and focusing on the data to provide that individualized, customized experience to help attendees meet their goals and get the best value. Some companies continue to be cautiously optimistic with their organizational spend when it comes to sending attendees, but I think it will continue to improve. As the U.S. Travel Association makes more progress on the U.S. visa situation, we also expect a growing influx of international attendees. What are some innovative ways the LVCVA helps trade show and convention organizers deliver the most value for their events? We focus on customer experience in the same way that trade show organizers are thinking about it. We got rave reviews with the West Hall Expansion of the Las Vegas Convention Center (LVCC), so over the next two years, we will be renovating the North and the Central halls, which will include not just the same look and feel, but also the digital experiences that can be leveraged for branding and sponsorship opportunities.  Vegas Loop, the underground transportation system designed by The Boring Company, is also a way we have enhanced the customer experience. Vegas Loop at the LVCC has transported more than 900,000 convention attendees across the campus since its 2021 launch. Last summer, Resorts World and The Boring Company opened the first resort stop at the Resorts World Las Vegas , with plans to expand throughout the resort corridor, including downtown Las Vegas, Allegiant Stadium and Harry Reid International Airport. The LVCVA also purchased the Las Vegas Monorail in 2020, the 3.9-mile-long elevated transportation system that connects eight resorts directly to the convention center campus. This is the only rail system in the world that integrates fares directly into show badges and registration. For trade show organizers, these transportation options mean saving time, money and effort when it comes to moving groups from the hotels to LVCC and around the city. Also, the more we can focus on building the infrastructure around the convention center, the more it supports the customer experience and ultimately supports our trade show organizers. Scheduled to debut in Q4, Fontainebleau Las Vegas will offer 3,700 hotel rooms and 550,000 square feet of meeting and convention space next to LVCC.  What are some of the plans for advancing DEI (diversity, equity and inclusion) within your organization? We’re currently partnering with instead of working with a leading consulting firm, to lay the foundation and create a solid DEI plan and be the leader when it comes to DEI initiatives. The heart of that journey with the consulting firm is also talking to our customers about their strategic approaches to DEI and driving innovation in this space.  What are your favorite ways to recharge? My husband and I have an RV and we’re outdoorsy people. So, while we have over 150,000 world-class hotel rooms and renowned restaurants right outside our doorstep, one of my favorite things to do is get out to Red Rock Canyon, the Valley of Fire, and Lake Mead. Five of the top national parks are within a three-hour drive from Las Vegas, so there’s a lot you can do. We love balancing the energy of Las Vegas with nature, and we’re noticing that a lot of attendees add activities off the Strip when they come here.  Valley of Fire What advice would you give to women following leadership paths in destination marketing? I think it’s about being laser-focused on what you want to accomplish; building a team around you that lifts you and helps you achieve your goals; and being humble and realizing that you do it as a group. No one gets this done alone. Thankfully, there are a lot of women in leadership in this organization, in our customers’ organizations, and in this city that we can be really proud of. We’re a formidable force that is making things happen.   This interview has been edited and condensed. This article is exclusively sponsored by the Las Vegas Convention & Visitors Authority. For more information, visit HERE.